Dorchester Minerals (NASDAQ:DMLP – Get Free Report) and W&T Offshore (NYSE:WTI – Get Free Report) are both small-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Profitability
This table compares Dorchester Minerals and W&T Offshore’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dorchester Minerals | 45.45% | 28.43% | 27.83% |
| W&T Offshore | -19.32% | N/A | -2.59% |
Risk & Volatility
Dorchester Minerals has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dorchester Minerals | 0 | 1 | 0 | 0 | 2.00 |
| W&T Offshore | 1 | 1 | 1 | 0 | 2.00 |
W&T Offshore has a consensus target price of $4.25, suggesting a potential upside of 18.22%. Given W&T Offshore’s higher possible upside, analysts plainly believe W&T Offshore is more favorable than Dorchester Minerals.
Dividends
Dorchester Minerals pays an annual dividend of $5.09 per share and has a dividend yield of 17.9%. W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Dorchester Minerals pays out 289.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. W&T Offshore pays out -11.8% of its earnings in the form of a dividend.
Institutional & Insider Ownership
19.2% of Dorchester Minerals shares are owned by institutional investors. Comparatively, 42.9% of W&T Offshore shares are owned by institutional investors. 5.9% of Dorchester Minerals shares are owned by company insiders. Comparatively, 35.9% of W&T Offshore shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Dorchester Minerals and W&T Offshore”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dorchester Minerals | $152.83 million | 9.11 | $55.25 million | $1.76 | 16.11 |
| W&T Offshore | $501.46 million | 1.08 | -$150.06 million | ($0.34) | -10.57 |
Dorchester Minerals has higher earnings, but lower revenue than W&T Offshore. W&T Offshore is trading at a lower price-to-earnings ratio than Dorchester Minerals, indicating that it is currently the more affordable of the two stocks.
Summary
Dorchester Minerals beats W&T Offshore on 9 of the 15 factors compared between the two stocks.
About Dorchester Minerals
Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of royalty properties in the United States. Its royalty properties include producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests in 593 counties and parishes in 28 states; and net profits interests represent net profits overriding royalty interests in various properties owned by the operating partnership. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P. The company was founded in 1982 and is based in Dallas, Texas.
About W&T Offshore
W&T Offshore, Inc. engages in the production, exploration, development, and acquisition of oil and natural gas properties. It focuses its operations in the Gulf of Mexico. The company was founded by Tracy W. Krohn in 1983 and is headquartered in Houston, TX.
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